What You Need to Know About Car Import Duty in Malaysia

Note: To know the exact figure you will need to pay. Subsribe to our calculator at KiraDuti.Com . All you need to know about car import duty in Malaysia website.

If you’re thinking about bringing a car into Malaysia from another country, it’s important to know about the taxes and fees you’ll need to pay. Malaysia has a system of taxes for imported cars to protect local car makers and generate money for the country. Here’s a simple guide to help you understand the costs involved.

Key Taxes for Importing a Car to Malaysia

When you import a car, there are several taxes you need to pay. These taxes can make the car more expensive, so it’s good to know about them beforehand.

1. Import Duty

This is the first tax you’ll need to pay. The amount depends on where the car is coming from. Cars from countries in the ASEAN region (like Thailand or Indonesia) might have lower taxes because of special agreements. Cars from other countries usually have higher taxes.

2. Excise Duty

This is the biggest tax you’ll pay. It applies to all cars, whether they’re imported or made in Malaysia. The amount depends on the car’s engine size and price. For some cars, this tax can be more than 100% of the car’s price!

3. Sales Tax

On top of the other taxes, there’s also a 10% sales tax. This tax is added after the import duty and excise duty, making the final price of the car even higher.

Other Costs to Think About

Besides these main taxes, you’ll also need to pay for things like shipping, insurance, and registration fees. If you’re bringing in a used car, make sure it meets Malaysia’s rules, like being a certain age and having the right features.

Example of How Taxes Work for Different Cars

Here’s a breakdown of how much tax you might have to pay depending on the type of car and its engine size:

A) Passenger Cars (Including Station Wagons, Sports Cars, and Racing Cars)

• Engine Size: Less than 1,800 cc
  • Import Duty: 30%
  • Excise Duty: 75%
  • Sales Tax: 10%
• Engine Size: 1,800 – 1,999 cc
  • Import Duty: 30%
  • Excise Duty: 80%
  • Sales Tax: 10%
• Engine Size: 2,000 – 2,499 cc
  • Import Duty: 30%
  • Excise Duty: 90%
  • Sales Tax: 10%
• Engine Size: Over 2,500 cc
  • Import Duty: 30%
  • Excise Duty: 105%
  • Sales Tax: 10%

B) Other Motor Cars

• Engine Size: Less than 1,500 cc
  • Import Duty: 30%
  • Excise Duty: 60%
  • Sales Tax: 10%
• Engine Size: 1,500 – 1,799 cc
  • Import Duty: 30%
  • Excise Duty: 65%
  • Sales Tax: 10%
• Engine Size: 1,800 – 1,999 cc
  • Import Duty: 30%
  • Excise Duty: 75%
  • Sales Tax: 10%
• Engine Size: 2,000 – 2,499 cc
  • Import Duty: 30%
  • Excise Duty: 90%
  • Sales Tax: 10%
• Engine Size: Over 2,500 cc
  • Import Duty: 30%
  • Excise Duty: 105%
  • Sales Tax: 10%

C) Commercial Vehicles

• All Types
  • Import Duty: 30%
  • Excise Duty: 0%
  • Sales Tax: 10%

Important Notes:

• MFN (Most Favoured Nation rate): This rate applies to countries that trade with Malaysia but don’t have a special agreement.
• ATIGA (ASEAN Trade in Goods Agreement): This special rate is for cars from ASEAN countries, which often have lower taxes.

Conclusion

When you’re planning to import a car into Malaysia, knowing about these taxes is really important. By understanding the import duty, excise duty, and sales tax, you can better plan how much money you’ll need. Remember to consider all the costs, so you’re not surprised by any extra fees. To calculate more accurate tax. Subsribe to our calculator at KiraDuti.com